Swiss America Blog Archive

7.27.15 - STOCKS STRUGGLE AGAINST "SEA OF RED"

Gold last traded at $1,096 an ounce. Silver at $14.60 an ounce.

NEWS SUMMARY: The Dow Jones Industrial Average tumbled triple-digits on Monday, sparked by a Chinese stock-market rout. Investors sold risky assets - such as equities, commodities and the U.S. dollar - and piled into safe havens, such as Treasuries and gold.

China Stocks and the Dollar May be About to Collide -Marketwatch
"Chinese shares saw the biggest daily fall since 2007 overnight, partly on fears that officials may be trying to pull back on supporting the market. And that means things got ugly all over again - unless you’re a gold bug. The metal’s closing in on $1,100 an ounce. China’s worries have spread to oil, which is adding to last week’s 5% drop. With commodity prices lower, some say it looks less worrying on the inflation front, reducing the chances of a near-term Fed hike....Wall Street is set to struggle with a sea of red."

Chinese Stocks Suffer Second Biggest Crash In History -ZeroHedge
"The Shanghai Composite plunged by 8.48%, closing nearly at the lows, and tumbling some 345 points for its biggest one-day drop since February 2007 and its second biggest crash in history! 'Investors are not confident that the bull market will return any time soon,' Jimmy Zuo, a trader at Guosen Securities, told Bloomberg....EVERYTHING rests on one ephemeral thing - the market’s confidence in the power of Central Banks to ensure a good outcome no mater what. Anybody paying attention to the lesson should not just be thinking about what might happen when that fragile confidence evaporates, but taking steps to ensure they don't get caught out when it does." Speaking of fragile confidence in central banks, the Federal Reserve is meeting this week to consider future interest rate hikes and how best to continue The Biggest Bank Heist in History.

When Authorities "Own" the Market, The System Breaks Down -Of Two Minds
"Central planning asset purchases aimed at propping up prices destroy the essential price discovery needed by private investors. Panicked by the possibility of declines that undermine the official narrative that all is well, authorities the world over are purchasing assets like stocks, bonds and mortgages directly....As the risk-on investment mindset switches to risk-off, house prices start declining....By propping up the price, the authorities have injected false information into the market, and as a result, nobody can trust that current prices are real....What authorities have created is a facsimile of a market. It looks like a market on the surface, but only gamblers and fools risk capital in markets based on false information." What if everything, including money itself, is mispriced? What if only one numeraire matters in the end? Discover The Only Economic Solution To Mispriced Money & Markets.

22 banks accused of manipulating US Treasury auctions -CNBC
"Twenty-two financial companies that have served as primary dealers of U.S. Treasury securities were sued in federal court on Thursday, in what was described as the first nationwide class action alleging a conspiracy to manipulate Treasury auctions that harmed both investors and borrowers. The State-Boston Retirement System, the pension fund for Boston public employees, accused Bank of America's Merrill Lynch unit, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan Chase, UBS, and 14 other defendants of illegally trying to profit on the sale of Treasury bills, notes and bonds at investors' expense." No big shocker in this new story, especially to those who have already read DON'T BANK ON IT!

The Latest Pied Piper of "the Death of Capitalism" -LewRockwell
"The latest old Leftist to write a book on the end of capitalism is somebody I had never heard of: Paul Mason. His book is titled, Postcapitalism. To launch it, The Guardian, that aging warhorse of British Leftism, published his article: 'The end of capitalism has begun.' This has been announced repeated by The Guardian for 80 years....It never ceases to amaze me how people who cannot think straight can come up with new justifications for whatever worldview they decided at 20 was correct, and which did not pan out....Of course, when his new book sinks without a trace, there will always be another last man standing."

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7.24.15 - BIG MAC CONFIRMS SHRINKING DOLLAR

Gold last traded at $1,085 an ounce. Silver at $14.48 an ounce.

NEWS SUMMARY: U.S. stocks extended losses Friday for a weekly loss as global economic data spooked investors and commodities continued to come under pressure. The U.S. dollar drifted higher while precious metal prices rebounded on bargain hunting.

Why aren't more Americans working? -Washington Times
"Has America entered a 'new normal' defined by lower economic growth and declining workforce participation?....Social and cultural trends affect work participation and have throughout history. There is a rising rate of single-parent families, who typically experience higher poverty rates than two-parent families....Testimony before the Joint Economic Committee revealed that programs put in place by the Obama administration during and after the recession have inadvertently reduced the reward of working....Other policies, such as the Affordable Care Act, minimum wage increases and the proposed federal overtime rule change, reduce employment opportunities and hours for workers."

McDonalds Puzzled by the dollar outlook? Buy a Big Mac -CNBC
"The Economist looks at just one item, a Big Mac, in several dozen countries around the world as a standard measure of value. For example, the average price of a Big Mac in the U.S. this month was $4.79; in China it was only 17 yuan, which works out to only $2.74 based on market exchange rates. So that price differential indicates that the yuan was undervalued by 43 percent." The price of a Big Mac can also help us measure the true inflation and shrinkage of the dollar's buying power in the U.S. About forty years ago, in 1974, a Big Mac cost just $.65 - today it's $4.79 - which is a 735% price increase since President Nixon abandoned backing our currency with gold in August 1971. BUT, If you own gold or silver, your buying power has kept up with rising prices and has offset the falling dollar. For example, $.65 face value of 90% silver coins today have a market value of $8.55 - enough to buy a Big Mac, fries, a large drink and a dessert. Hard-owned money protects your hard-earned money. Read The Timeless Truth About Gold & Silver.

Fed Accidentally Released Confidential Projections -Bloomberg
"The Federal Reserve said it inadvertently released on its public website confidential economic projections prepared by its staff for the June 16-17 meeting of the policy-making Federal Open Market Committee....The projections show the Fed staff expected the federal funds rate to average 0.35 percent in the fourth quarter of 2015. Economists said that implied one interest-rate increase by the Fed this year....Fed officials’ forecasts released in June implied two rate increases in 2015, with the benchmark lending rate finishing the year at 0.625 percent, according to their median estimate." Craig Smith and Lowell Ponte explain in The Biggest Bank Heist in History...Virtually zero percent interest rates are to long-term economic policy what junk food is to nutrition – it tastes great going down, but later come horrible results....[that] pose dangers for all of us.... ZIRP [is]...how the Fed gave the U.S. Financial Diabetes.

Jim Grant: Still Bullish On Gold -ValueWalk
"Don’t tell Jim Grant, the publisher of Grant’s Interest Rate Observer, that gold is a hedge. The author and publisher said the metal is much more dynamic; providing a trifecta of price, value and sentiment, and investors should have exposure to it. '[G]old is an investment in monetary and financial disorder - not a hedge. You look around the world and you see exchange rates are properly disorderly, when you look around the world of lending and borrowing - we are in a regime of price control by another name, so-called zero percent rates and quantitative easing by the world central banks – we are in one of the most radical periods of monetary experimentation in the annals of money,' Grant told Kitco News Thursday."

Coins Worth Their Weight in Gold -- And Then Some -TheStreet
"'When gold drops this fast and this much, we see a lot of people jump into the markets,' said Chris Brigandi, the manager of Brigandi Coin Company in New York. 'We've had a lot of people calling and coming to the store to buy gold because they think it's a great buy right now.'....But both gold and silver, its (considerably) cheaper alternative, 'will bottom out, probably sooner than most people think,' said Jim Wyckoff, Kitco's senior technical analyst. 'We'll be in 'up-trends' at some point.'...One example of a collector's return on investment is the 1994 Proof Silver Eagle coin, originally purchased for $23 and recently sold for nearly $1,800..."

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7.23.15 - SELL RISK, BUY SAFETY

Gold last traded at $1,094 an ounce. Silver at $14.70 an ounce.

NEWS SUMMARY: U.S. stocks turned lower Thursday - despite upbeat unemployment data - as investors sold riskier stock assets to buy Treasuries. Gold prices hovered near $1,100 an ounce amid bargain hunting.

Surge in Demand For Coins, Bars Around World -ZeroHedge
"The manipulative smash on the gold price on Sunday night has once again led to a surge of buying of gold coins and bars across the globe. Both the Wall Street Journal and Reuters report on how bullion dealers are seeing a spike in demand for gold coins and bars in India and China and indeed Europe, Australia and the U.S. The U.S. Mint - which ran out of Silver Eagles earlier in the month due to unexpectedly high demand - has sold 110,000 Gold Eagle one ounce coins so far this month according to Reuters. This compares with a mere 21,500 ounces sold in May and 76,000 in June. It represents the highest level of monthly demand in over two years - with more than a week to go till the end of the month."

Time to Sell Risk Assets, Buy Gold? -Barrons
"Few are talking about shorting gold these days. That's because the price of the metal has come down so hard and fast in recent months. On Wednesday, gold futures logged their 10th straight session of losses. At a price of roughly $1,093 an ounce, many are beginning to wonder whether the investors are finally capitulating or throwing in the towel, setting the stage for a comeback in the metal’s price. Writing on his Felder Report blog, Jesse Felder argues that gold looks like a buy now..." Learn how simple it is to hedge rising market risks by putting yourself on a personal gold standard, read The Timeless Truth About Gold & Silver.

Gilder Shows Why Modern Macroeconomics Is Anti-Scientific -CobdenCenter
"There are a number of myths about the gold standard. These have ossified in the minds of such Keepers of the Conventional Wisdom, besides Prof. Krugman, as Austin Goolsbee, once President Obama’s top economist....These myths also paralyze the thinking of the current crop of our economic officials and policy makers....The gold standard, as Gilder trenchantly shows, is eminently scientific and, thus, modern....It is macroeconomics that is the pseudo-'science.' Thanks to George Gilder’s brilliant new 106 page monograph, The 21st Century Case For Gold, elucidating the monetary implications of Shannon information theory, we better understand the scientific grounding for the classical gold standard." Read Gilder book review and free download link

Banks still trump citizens in the minds of regulators -Fortune
"Federal watchdogs have plenty to say about the well-being of big banks, but very little about the financial health of regular Americans....In elite circles, of course, some officials would like to move on. The Federal Reserve is even considering raising interest rates. But how carefully have they looked at their own data and analyzed the effect of interest rate changes on those who have been left behind and who remain in this economy debtors rather than investors?.... At the end of May, the Federal Reserve released its 'Report on the Economic Well-Being of U.S. Households in 2014.' The results were dismal. The survey showed that nearly 60% of those polled believe they are the same or worse off than they were in 2008, and 28% of those responding had to rely on family or friends for financial assistance in the last year." In DON'T BANK ON IT! Craig Smith and Lowell Ponte explain why big government and big banking interest will always trump citizens.

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7.22.15 - THE ULTIMATE 'GREATER WISDOM' ASSETS

Gold last traded at $1,091 an ounce. Silver at $14.73 an ounce.

Why US stocks could drop up to 40% -CNBC
"The U.S. stock market could 'easily' drop 20 percent to 40 percent, closely followed contrarian Marc Faber said Wednesday - citing a host of factors including the growing list of companies trading below their 200-day moving average. 'It shows you a lot of stocks are already declining.'....Faber, who lives in Asia, said he sees 'no growth' coming from the economies there, with some countries in recession. As a result, Faber does not see much strength coming from the rest of the world." The Fed's failed experiment in zero interest rate policies is killing the American dream while pumping up a stock market bubble, as Craig Smith and Lowell Ponte explain in The Biggest Bank Heist in History.

The Ultimate 'Greater Wisdom' Assets -Swiss America
The mass media loves stomping on gold bugs, usually claiming gold is a "bad" investment or and "underperforming" commodity. For example, Guy Foster, Group Head of Research at Brewin Dolphin recently told the press, "Gold is the ultimate greater fool asset - the only reason anyone will buy it is because they think they can sell it to someone else for more." WRONG! Like most Americans, this poor guy is confused about the true function of gold. The reasons for maintaining a "core" holding of physical gold go far beyond profit alone. Gold is the ultimate form of money which has served as wealth insurance for thousands of years. Since day one Swiss America has told the public the full story: Gold is neither a commodity nor an investment - it is the world's most trustworthy store of value, time and labor. The truth is, physical gold and silver coins are the ultimate 'greater wisdom' assets! Call Swiss America today at 800-289-2646 ... it's the wise thing to do!

Gold is about to see a comeback -CNBC
"Gold [prices] recently tumbled to five-year lows. But according to one strategist, the precious metal isn't going to stay down for long. 'With all the bears in the woods, everybody [being] bearish is probably the most enticing reason to start to pick at the market,' George Gero said Tuesday on CNBC's 'Futures Now.'....'Gold, right now, is oversold,' Scott Nations, president and chief investment officer of NationsShares, said Tuesday. 'It's because people really were hitting the sell button regardless of price.'"

Ongoing Greece Bank Deposit Run -ZeroHedge
"Despite the imploring of Greek bankers for Greeks to 'take your money out of your chests and houses - which are not safe in any case - and deposit at banks,' it appears the Greek bank deposit run continues. As The ECB just announced another €900 million increase in Emergency Liquidity Assistance, strongly suggesting that in the 2 days since the last increase, banks are once again insolvent facing a liquidity crunch as the 'banks are trustworthy' propaganda falls on very deaf Greek ears." THE GREEK SHOWDOWN explains why this Greek tragedy is still far from over.

What is your time really worth to you? -ClearThinking.org
"You've probably heard the saying 'time is money.' It's a popular line for a reason - it's true....Everyone has an implicit value for their time, though they may not think in those terms. Even a billionaire will volunteer to do an extra hour of work if he or she is offered enough money in return (say, ten million dollars). Likewise, even a desperately poor person will refuse an extra hour of work if the compensation is too small (say, a penny). The value of time can also change dramatically depending on how much of it you have available - you will likely value your free time much more highly if you're very busy than if your schedule is completely clear."

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7.21.15 - GOLD MINIMIZES DOWNSIDE RISK

Gold last traded at $1,103 an ounce. Silver at $14.78 an ounce.

NEWS SUMMARY: U.S. stocks fell sharply Tuesday on disappointing earnings amid a lack of fresh economic data. Meanwhile, the U.S. dollar pulled back and precious metal prices stabilized above 5-year lows.

Go For Gold in 2015! -Jim Cramer, CNBC
Gold brings a special element into a portfolio, one that makes it different from all other metals. "I consider gold as an insurance policy," says CNBC's Jim Cramer. Cramer recommends gold because it tends to go up when everything else is going down. It is the investors' insurance against geopolitical events, uncertainty and inflation. Just as you wouldn't own a home or car without insurance, you shouldn't have a portfolio without gold. Do you get upset when your insurance doesn't go up in value? No. So, don't ridicule gold. Owning gold is not about upside potential. It is about minimizing risk to the downside. Read more in Swiss America's 2015 Real Money Perspectives.

3 Reasons Why Gold Is Oversold -Barrons
"First, sure, gold has suffered from a stronger dollar, but the decline in gold far exceeded the rise in the dollar....Plus, the Federal Reserve Bank will remain very accommodating even after the first rate hike, which means gold remains a good 'store of value', wrote analyst Simona Gambarini....Second, yes, for the time being, Europe found a temporary solution to the Grexit fiasco. But let’s not kid ourselves - the Greece problem is not going away - so gold is still a viable 'safe-haven' asset. Third, China and India may prove to be aggressive future buyers..."

Gold: A Pure Measure of Time -George Gilder
"The source of the value of money is time - irreversible, inexorably scarce, impossible to hoard or steal, distributed with remorseless equality to rich and poor alike. As an index of time, gold imparts the accurate price signals needed for sustained economic growth and expanded opportunity. Gold can function as money because it operates outside the financial economy as an index of the time it takes to extract it from the earth. The cost of extraction rises almost in proportion to the advance of mining technology. Gold thus cancels capital and technology and becomes almost a pure measure of time. Only gold money is rooted in time." The 21st Century Case for Gold book review...

Fed's New Capital Restraints for Big Banks -New York Times
"Nearly eight years after panic on Wall Street tipped the country into a severe recession, federal regulators are still trying to minimize the risks to the overall economy posed by large banks. The Federal Reserve introduced new restraints on Monday that would apply to eight of the nation’s largest banks, which hold more than $10 trillion in loans and securities. The banks include big Wall Street firms like Goldman Sachs, Citigroup and JPMorgan Chase, which currently faces an estimated $12.5 billion financial shortfall under the new rules....Representatives for the large banks had criticized the new rules, contending that they might make American banks less competitive compared with foreign banks." Ironically the U.S. Government and Federal Reserve are now forcing big banks to hold more cash, at the same time they are punishing Americans with near zero banks returns and mounting a new "War on Cash" - as Craig Smith and Lowell Ponte detail in THE SECRET WAR. For example, Did you know the total currency in the U.S. financial system is about $1.36 Trillion? That's less than 1% of the total "money" in the financial system. Yes, the “War Against Cash” is happening because cash has become intolerably dangerous to the giant illusion built on debt.

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7.20.15 - WHY $1,100 GOLD A GREAT BUY!

Gold last traded at $1,106 an ounce. Silver at $14.75 an ounce.

NEWS SUMMARY: U.S. stocks inched higher Monday as investors digested earnings reports. Precious metal prices fell sharply on Asian selling after China reported gold reserves rose less than expected.

11 Reasons $1,100 Gold is a Great Buy! -Swiss America
1. Solid fundamentals - Gold is the ultimate "wealth insurance"
2. Gold production cost - Average cost to mine 1 oz. gold is $1,100
3. Gold stands test of time - debt-free asset, "Time is money" -Ben Franklin
4. Gold is NOT a commodity or an investment - it's worldwide money
5. Gold is a 100% liquid asset - not politically controlled by governments
6. Money either builds or destroys nations - debt money tears us down
7. Financial peace of mind - requires a "personal gold standard"
8. Gold is undervalued - forget about upside, cover downside risks
9. U.S. Constitution - (Art. 1., Sec. 10) requires gold/silver money
10. Private wealth - classic U.S. gold coins = privacy of ownership
11. Cost dollar averaging - Wise economic principle to grow wealth

Gold Plunges to Lowest Since 2010 -Bloomberg
"China, the world’s largest consumer of bullion, reported gold reserves on Friday that were smaller than expected. Prices fell below the 2014 low, a level that makes the metal vulnerable to more losses, Georgette Boele, a strategist at ABN Amro Bank NV in Amsterdam, said by e-mail on Monday. 'This sudden drop during Asian trading seemed to have been triggered by some stop-loss selloffs that have nothing to do with fundamentals,' Wallace Ng, a trader at Gemsha Metals Co., said from Shanghai. 'The market is in one of its bear phases, where any news is bearish news,” said David Baker, Sydney-based managing partner at Baker Steel Capital Managers LLP."

timeless truth TEXAS “BANK” COULD DEFEAT OBAMA’S BIG MONEY GRAB -Western Journalism
By Craig R. Smith & Lowell Ponte - "A new kind of 'bank' is being born that might break the money monopoly of the Federal Reserve, thwart President Barack Obama’s takeover of our banks, and restore honest money in America. In this bank your hard-earned savings are secured not in ever-inflating dollars, but in gold, silver or other precious metals. Your bills can be paid by electronically transferring not dollars but quantities of gold with others who have accounts there....Could it be Texas will lead the charge to restore financial freedom - by liberating us from the tyranny of the Federal Government and Federal Reserve's fiat paper money system? We hope so!"

The 21st Century Case For Gold -Swiss America
"Being a so-called 'gold bug' can be very counter-intuitive in today's world of changing economic and monetary values. The public has been told over and over by so-called experts to think of gold as either 'just another commodity' or 'just another investment'. But for over 30 years Swiss America has told the public the full story: 'Gold is neither a commodity nor an investment - it is the world's most trustworthy store of value, time and labor.' Now a new scholarly book and scientific theory, with substantial imperative evidence, backs us up our premise. George Gilder's book, The 21st Century Case for Gold: A New Information Theory of Money (PDF) confirms that freedom-loving citizens seeking alternative forms of money that will stand the test of time can put themselves on a 'personal gold standard' with confidence." Discover The Timeless Truth About Gold & Silver.

Greek Banks Reopen Their Doors -Wall Street Journal
"Greek bank branches reopened their doors after a three-week shutdown imposed to prevent a banking system collapse, but almost all the restrictions on financial transactions remained in place - a sign of how far Greece remains from normality....Most capital controls, including limits on cash withdrawals and money transfers, remain in place at Greece’s banks. But from Monday depositors are allowed to bundle their €60 ($64.96) daily withdrawal limit over several days and take out a cumulative €420 at the end of the week." THE GREEK SHOWDOWN explains why this Greek tragedy is still far from over.

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7.17.15 - BEST GOLD BUYING OP IN FIVE YEARS!

Gold last traded at $1,131 an ounce. Silver at $14.83 an ounce.

NEWS SUMMARY: U.S. stocks traded mixed on Friday - with a Google price spike boosting tech stocks - amid rising consumer inflation and falling consumer sentiment. Meanwhile, a firmer U.S. dollar together with technical selling pressure pushed precious metal prices to five year lows.

gold coins Top money managers are turning to gold - should you? -Marketwatch
"The world’s top money managers have hated gold bullion for almost as long as anyone’s been asking them. But not anymore. With China wobbling, Europe in turmoil and the price of bullion down to multi-year lows, the long-running gold skeptics running the world's biggest investment funds have suddenly and dramatically turned on to its appeal. 'Gold is undervalued' at around $1,155 an ounce, say a small majority of managers, according to the latest Bank of America Merrill Lynch survey." The importance of this survey shouldn't be ignored. Bank of America Merrill Lynch surveyed over 100 of the top investment exerts who manage about $400 billion in assets globally. "Gold has certainly become cheaper and cheaper in recent years, especially in relative terms. Since 2011 — around the time current presidential candidate Donald Trump turned bullish of gold, as it happens — gold has fallen about 40% in U.S. dollar terms. Meanwhile, stocks and bonds have boomed to new highs. So it isn’t completely crazy to think that maybe you should sell a little of what’s gone up to buy a little of what’s gone down."

Consumer Price Inflation Rising -Fox Business
"U.S. consumer prices rose for a fifth straight month in June as the cost of gasoline and a range of other goods increased, further signs of firming inflation that strengthen the case for an interest rate hike this year. The Labor Department said on Friday its Consumer Price Index rose 0.3 percent last month after increasing 0.4 percent in May."

China Banks Recruited in Stock Market Rescue -Voice of America
"China's biggest banks have lent 1.3 trillion yuan ($209.4 billion) to the country's state-backed margin lender to halt a meltdown in Chinese shares, local media said on Friday, underlining the government's determination to support stock prices....Spooked partly by speculation that China's central bank was about to end its monetary policy easing, China's stock market plunged in the past month by nearly a third at the peak of its sell-off, wiping out around $4 trillion. The collapse in stock prices sparked China's biggest rescue effort of its equity market, with the government launching a series of moves that included halting initial public offers, and banning firms and their executives from selling shares."

$1 Trillion Pension Shortfall Set to Grow -Bloomberg
"Houston was warned by Moody's Investors Service this month that it may be downgraded because of mounting retirement bills, the latest municipality put on notice as the company ignores bookkeeping gimmicks that let cities mask the size of their debt for years....Cities that shortchanged pensions for years are under growing pressure to boost their contributions, even after windfalls from a stock market that's tripled since early 2009....That was on display this week for Chicago, whose credit rating was cut to junk by Moody's in May because of a $20 billion pension shortfall....Moody's, which in 2013 began using a lower rate than governments do to calculate future liabilities, has estimated that the 25 largest U.S. public pensions alone have $2 trillion less than they need. Cincinnati and Minneapolis are among cities Moody's has since downgraded."

Twin Crack-Ups Set To Implode World Economy -King World News
"The ECB and the EU are now in control of the Greek economy, banks and national assets. There is absolutely no chance for Greece to recover as part of the EU. And what happened to Greece will be the model for the next set of weak countries such as Italy, Spain, Portugal and France. They will all fall as dominos [sic] before too long.... So we will see twin $200 trillion debt and $1.5 quadrillion derivatives implosions. That will lead to the most historic wealth destruction ever in global stock, with bond and property markets declining at least 75 - 95 percent. World trade will also contract dramatically and we will see massive hardship across the globe....The Greek crisis is proof of how important it is to hold a substantial amount of gold outside the banking system. The Greek banks almost collapsed, but because Greece is a relatively small country, its banking system was saved in the short term. But as the problems in the world economy and the financial system worsen, we will see bail-ins of depositors' money in most countries."

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7.16.15 - IN BANKS WE TRUST?

Gold last traded at $1,143 an ounce. Silver at $14.98 an ounce.

NEWS SUMMARY: U.S. stocks traded higher Thursday on upbeat bank earnings, as fears of a Greek exit from the eurozone subsided. Meanwhile, the U.S. dollar climbed amid ongoing euro weakness, pressuring precious metal prices.

Investors in Greek Banks Face Wipeout -Wall Street Journal
"Even as Greek politicians on Thursday passed austerity measures to ensure a new bailout, investors in the country’s banks faced the prospect of their holdings being 'wiped out' under the terms of a €25 billion recapitalization plan. To avoid imposing losses on depositors and senior bondholders at the Greek banks, shareholders will likely be 'wiped out' under the European Stability Mechanism recapitalization, according to Alberto Gallo, head of macro credit research at Royal Bank of Scotland." What we are witnessing in Greece this year is an early warning sign for all nations living above their means. Capital controls are coming worldwide, warn Craig Smith and Lowell Ponte in DON'T BANK ON IT! The Unsafe World of 21st Century Banking.

Greece How Greeks Are Coping With Capital Controls -Bloomberg
"Heavily reliant on Greek tourism over foreign, [restruant owner] George Kakazanis is on the frontline of the country's ailing economy. Like his country he too is struggling to pay his bills having amassed 100,000 euros ($109,000) worth of debt for everything from tax to electricity. The introduction of capital controls has exasperated the situation. With banks closed for over two weeks Greeks are even less willing to spend but that doesn't mean that business stands still. 'My son is a fisherman. Today I took two kilograms of my son's fish to the butcher. He gave me two kilograms of meat in return,' says Kakazanis. 'We don't take money to the bank. The money we earn is spent on supplies and expenses to eat and drink.'" It appears Greek citizens have virtually no trust left in their banks and, on a grassroots level, are now resorting to a barter system for daily business transactions.

A Fed Without Vision -New York Sun
"It’s nothing short of amazing to see the stonewalling of Congress by the Federal Reserve. This was certainly the headline news out of the testimony by the chairman of the central bank, Janet Yellen, before the House Financial Services Committee. It’s not only that she’s resisting the beginnings of the movement in Congress for greater oversight of the formation of monetary policy. She’s also resisting the congressional demands for documents related to what Congress suspects was, as Reuters put it today, a 'failure to properly respond' to the leak three years ago of 'sensitive information to a private financial newsletter'....We are approaching the half century mark in our experiment with fiat money, meaning money that has no legislated definition and is not defined in terms of gold or silver. We have consumed an entire presidency waiting for a full recovery from the recession that struck in 2008, a recession that the leaders of the Federal Reserve - both Ben Bernanke and Mrs. Yellen - have confessed they failed to see in the models and data followed by the Fed." Without a clear vision, nations and currencies perish. Today the Fed's failed experiment in zero interest rate policies is killing the American dream, as Craig Smith and Lowell Ponte explain in The Biggest Bank Heist in History.

Texas Launches Gold-backed Bank, Challenging Federal Reserve -The New American
"The State of Texas is setting up a gold-backed bank that will allow depositors to bypass the controversial Federal Reserve System and its fiat currency in banking and commerce, according to the state representative who authored the recently enacted law. Under the measure, passed overwhelmingly by lawmakers and signed in mid-June by Republican Governor Greg Abbott, Lone Star State officials will establish and operate the Texas Bullion Depository for anyone who would like to deposit and trade in precious metals. The implications are as big as Texas." In a world of stagnant growth, currency deception and untrustworthy banks; this could be the start of a new nationwide trend. Meanwhile, we suggest putting yourself on a personal gold standard, as we cover in The Timeless Truth About Gold & Silver.

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7.15.15 - SOUND MONEY STANDS THE TEST OF TIME

Gold last traded at $1,147 an ounce. Silver at $15.04 an ounce.

NEWS SUMMARY: U.S. stocks traded near flat Wednesday following Fed Chair Janet Yellen's Congressional testimony. She said the Fed plans to raise rates this year IF the economy evolves as expected. Yellen acknowledged the Fed may have reduced the amount of available credit, referring to it as ‘unintended consequences.’ Meanwhile, the euro fell on Greek fallout lifting the U.S. dollar and dampening precious metal prices.

Yellen urges Congress to mind their own business -The Hill
"Federal Reserve Chairwoman Janet Yellen urged lawmakers to tread lightly when it comes to overhauling the central bank, warning that proposed changes could undermine its ability to support the economy. 'Efforts to further increase transparency, no matter how well intentioned, must avoid unintended consequences that could undermine the Federal Reserve's ability to make policy in the long-run best interest of American families and businesses,' she said." The Biggest Bank Heist in History explains how the FED's free money to big banks has left our economy and wages stagnant - while creating the biggest stock market bubble in history! The truth is, "the Fed's zero interest rate policy (ZIRP) undermines the health of the body politic and the free market economy. It not only sucks away the lifeblood of capitalism – capital – but also destroys the morals, values, entrepreneurship, work ethic and thrift needed for successful free enterprise."

gold Citizens seek private pathways to sound money -Washington Times
"What is money? ....'Money as the metric and information bearer can be reliable to the extent that its value is also rooted in time,'" says economist-technologist-philosopher George Gilder. Mr. Gilder and others argue that only gold is rooted in time. Gilder, who has written many bestselling and provocative books, including Wealth and Poverty, Microcosm, Telecosm, and Knowledge and Power, has now produced a remarkable essay titled, “The 21st Century Case for Gold: A New Information Theory of Money (PDF).” "In sum, Mr. Gilder argues that money is information, and that at some point a bitcoin-like non-government money will emerge on the Internet whose price will merge with that of gold, becoming bitgold."

Mr. Gilder has done the world a big favor writing this new monograph on gold. He reminds readers that no paper currency can be an accurate measure of wealth or time unless it is rooted an unchanging "a store of value". Gold alone is the ultimate "numeraire" - or plumb line for measuring all other forms of money. This simple chart illustrates why gold protects your time, labor and future.

As Craig Smith and Lowell Ponte wrote in their White Paper, RE-MAKING MONEY: Ways to Restore America's Optimistic Golden Age ...

The highway to the socialist welfare state, and to serfdom, is a carpet of government paper fiat money.

The path back to the practical and moral values of America's Founders requires us to restore the precious metal they constitutionally specified as real money.

This is the philosophical difference between a society built on paper promises and a society built on a solid foundation of integrity and gold.

Producer Prices Rise 5% Annualized -Fox Business
"The Labor Department said on Wednesday its producer price index increased 0.4 percent last month after increasing 0.5 percent in May. It was the second straight month of increase in producer prices....Wholesale egg prices soared a record 84.5% last month after surging 56.4% in May. Higher gasoline and food prices are likely to filter through to the June consumer price index released on Friday."

With or Without Greece, The Eurozone Is In Trouble -NYTimes
"The euro was supposed to boost European economic growth and living standards, strengthen public finances and hence the sustainability of welfare states....The hoped-for convergence in living standards between richer and poorer members of the eurozone has failed to materialize.... If there is a Greek exit, investors will be fully aware that a sovereign default could lead to a banking sector collapse." THE GREEK SHOWDOWN explains why this Greek tragedy is not over yet and how the next debt crisis could quickly spread worldwide.

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7.14.15 - NUCLEAR IRAN: A BIG MISTAKE

Gold last traded at $1,153 an ounce. Silver at $15.31 an ounce.

NEWS SUMMARY: U.S. stocks inched higher Tuesday, despite downbeat June retail sales numbers. Meanwhile, currencies and precious metal prices both drifted lower ahead of Fed-head Janet Yellen's semi-annual testimony to Congress Wednesday.

Iran, World Powers Reach Nuclear Deal -WSJ
"Iran reached a landmark nuclear agreement with the U.S. and five other world powers....The Obama administration and its partners hope the deal will resolve a dispute that at times threatened to spark a military conflict....Critics in Washington, Israel and the Gulf nations that neighbor Iran say the deal will merely delay the country’s path to nuclear weapons....Israeli Prime Minister Benjamin Netanyahu called the deal a historic mistake."

IRAN Iranians Euphoric After Nuclear Deal Reached -Vocativ
"Iranians posting across social media platforms are elated that Iran and six world powers reached a historic nuclear deal Tuesday after almost a decade of negotiations. The agreement limits Iranian nuclear activity in exchange for billions of dollars in sanctions relief."

According to AMERICA ENGULFED an important White Paper by Craig Smith and Lowell Ponte, "World War III has already begun in the Middle East with the dawn of the 'Arab Spring', the destabilization of governments from Egypt and Libya to Iraq and Yemen, and the proliferation of nuclear weapons driven by weak American acquiescence to the ambitions of the theocratic state of Iran's apocalyptic rulers." The world depends on oil from this region to fuel our economies. The future of both the U.S. Dollar and the Euro depends on the level of chaos in the Middle East.

The biggest threat to our global economy -CNBC
"We have now hard evidence that the Chinese economy is hardly growing at the present time," the publisher of The Gloom, Boom & Doom Report said on CNBC's Trading Nation. "If China slows down, the demand for industrial commodities goes down. It affects all the resource producers: Argentina, Brazil, the Middle East, Central Asia, Africa, Australia," Marc Faber said Monday. "That can have a huge impact on the global economy....Greece is a sideshow, because the economy is small relative to the rest of the world. But if investors are so concerned about Greece, it shows how fragile the financial markets are," Faber said.

Wall Street’s disastrous 'fix' for Puerto Rico -NYPost
"Officials from Puerto Rico met in New York Monday to explain to Wall Street lenders their plan to deal with a fiscal meltdown that threatens to sink the US territory further into a Greek-style financial abyss. Sounds like progress, right? Well, that depends on how you define progress. For holders of the island’s more than $70 billion in debt, the increase in taxes and other austerity measures Gov. Alejandro Garcia Padilla says he might consider in exchange for some degree of debt relief might be a good thing. But for the people of Puerto Rico, it couldn’t be worse. It all but ensures a downward spiral of big government squeezing a smaller and smaller tax base so Wall Street can get a quick payday and we can all take a victory lap and proclaim 'crisis averted!'" Who will be the next Greece? Will it be Portugal, Italy or Spain? Or, closer to home, could it be Puerto Rico, Illinois or New Jersey - who are all facing bankruptcy - like Detroit? Find out by reading THE GREEK SHOWDOWN.

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7.13.15 - GREECE: MICROCOSM OF THE WORLD

Gold last traded at $1,155 an ounce. Silver at $15.45 an ounce.

NEWS SUMMARY: U.S. stocks advanced Monday as investors cheered an agreement for Greece's third bailout to keep them in the eurozone. Meanwhile the Euro fell sharply, boosting the U.S. dollar and weakening precious metal prices.

Greece aims to end bank holiday Thursday -Reuters
"Greece will extend a bank holiday that has been in effect since June 29 for two more days, two bankers told Reuters on Monday after a meeting with the country's deputy finance minister. 'The aim is to reopen branches on Thursday,' one of the bankers said, declining to be named. Greece imposed capital controls, rationing cash to a daily withdrawal limit of 60 euros from automatic teller machines after a wave of withdrawals threatened to overwhelm the system." THE SECRET WAR, a new Research Paper by Craig R. Smith & Lowell Ponte, explains why the U.S. Government and Federal Reserve are behind an expanding “War on Cash”.

Greece Assets Greece Handed Over To Europe -ZeroHedge
"The two most humiliating aspects of the latest extend and pretend 'deal' for the Greek people will be the return of the Troika's IMF mission to Athens, and the escrowing of some €50 billion in Greek assets in a liquidation fund....What are these assets? For the answer we go to the horse's mouth, Jeroen Dijsselbloem, who laid out the holdings of the proposed Greek privatization that would be sold off as follows: 'It still is going to be an independent fund, valued at €50 billion which can be airplanes, airports, infrastructure and most certainly banks.'" Read THE GREEK SHOWDOWN to understand why this Greek tragedy is not over yet and how this debt crisis is about to quickly spread worldwide.

Elite leading Greece and the World to Perdition -KingWorldNews
"Greece is of course only a microcosm of the world as a whole. Virtually every nation in the West has the same problem, including Japan plus China and the Emerging world. Everybody focuses on little Greece with a debt of €320bn that has only increased by 33% since the Great Financial Crisis started in 2007. Take the US with a debt of $18 trillion and a debt that has gone up by 100% since 2007. Thus, the US federal debt has increased by $9 trillion in the last 8 years as against an increase of only €80bn for Greece. Also, the US has not had a real budget surplus since 1960. So the Elite is using little Greece as a diversion from the real problem in the world which is of course a virtually bankrupt US economy."

China Seeks More Influence in Gold Prices -Bloomberg
"China’s opening more of its gold market to Hong Kong investors, the latest step in its campaign to influence the price of bullion globally and expand use of the renminbi beyond its borders. Members of the Hong Kong-based Chinese Gold & Silver Exchange Society will be able to use offshore yuan to buy and sell the precious metal on the Shanghai Gold Exchange when trade starts at 8 p.m. local time on Friday, according to Liu Liang, a spokesman for the exchange." Gold and silver are respected and accepted worldwide because they're pure, liquid, debt-free assets which can still be held privately in your own two hands. Owning physical gold and silver coins today also positions you to preserve your wealth for a lifetime, as well as for the next generation. Read more: The Timeless Truth About Gold & Silver.

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7.10.15 - THE ILLUSION OF STABILITY

Gold last traded at $1,157 an ounce. Silver at $15.48 an ounce.

NEWS SUMMARY: U.S. stocks rallied Friday on renewed hopes that debt-laden Greece will reach a deal with its creditors this weekend and stave off an exit from the eurozone. Precious metal prices steadied as hopeful investors bought Euros and sold U.S. dollars.

Yellen expects rate hike this year, but... -Reuters
"Federal Reserve chair Janet Yellen on Friday said she expects the Fed to raise interest rates at some point this year, but pointed strongly to her concerns that U.S. labor markets remain weak and that more workers could be encouraged back into the job market with stronger growth. In her speech Yellen gave no direct hint about whether she anticipates more than one rate hike over the Fed's four remaining meetings of 2015. Fed officials seem to have set the stage for an initial increase as early as September. But recent events - the stock market collapse in China and the confusion in Greece in particular - have raised fresh concerns over how the world economy may hurt U.S. growth. Investors now believe an initial hike is not likely until next year." Disregard comments by Yellen, the woman behind the financial curtain of economic OZ, because she has no idea if, or when, the Fed will finally decide to abandon zero interest rates, as Craig Smith and Lowell Ponte explain in The Biggest Bank Heist in History.

LATEST: Greek Debt Crisis News -Reuters
"Greek Prime Minister Alexis Tsipras appealed to his party's lawmakers on Friday to back a tough reforms package after abruptly offering last-minute concessions to try to save the country from financial meltdown. After walking into a party meeting to applause, Tsipras rallied his Syriza lawmakers to throw their weight behind the new proposals ahead of a snap vote in parliament on the negotiations, urging them to help keep Greece in the euro. As Commerzbank's Markus Koch said on Thursday, “the 'No' in the referendum appears to be turning into a 'Yes' from Tsipras." reports Zero Hedge. So will Greece stay in the eurozone? Odds now point to yes, despite last Sunday's resounding "No!" vote. Either way, there is a lot Americans can learn from this debt debacle which is all covered in THE GREEK SHOWDOWN.

Maintaining The Illusion Of Stability Requires Ever-Greater Extremes -Zero Hedge
"On the surface, everything still looks remarkably stable in the core industrial economies. The stock markets in Japan, Germany and the U.S. are only a few percentage points off their highs, and we're constantly assured that inflation no longer exists and official unemployment is low. But this is not real stability; it is a brittle simulacrum (imitation) of stability, an illusion that has required the status quo to pursue extremes of policy and debt that are intrinsically incapable of yielding stability." We live in a political and economic world in which symbolism has been elevated above substance for an extended time period. This situation could change suddenly overnight. Your best financial protection is to own more assets that represent true substance - such as precious metals - because they are tangible, liquid and time-tested assets that always stand tall when the illusions finally fall.

Investors seek refuge in gold -Marketwatch
"Investment interest in gold got a boost as the U.S. dollar weakened, a combination of unrelated events prompted a selloff in the main U.S. stock indexes and uncertainty continued to surround Greece, Iran and China....worries about China have been the main culprit for weakness in industrial metals prices as the second-largest economy struggles to stem a downshift in its financial market." Read more in The Timeless Truth About Gold & Silver.

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7.9.15 - STOCK MARKET LIQUIDITY AT RISK

Gold last traded at $1,159 an ounce. Silver at $15.36 an ounce.

NEWS SUMMARY: U.S. stocks rebounded Thursday from yesterday's steep selloff as traders shrugged off Greek debt worries and the recent plunge in Chinese stocks. Meanwhile, U.S. jobless claims rose to their highest level since February. The dollar rebounded while precious metal prices inched lower.

China Stocks Soar After Government Threatens Short Sellers With Arrest -ZeroHedge
"The Shanghai Composite Index had dropped as much as 3.8% to a 4-month low before the news that the cops were going to arrest anyone who was caught 'maliciously shorting stocks', when everything suddenly took off, and the SHCOMP closed a 'Dramamine required' 5.8% higher, the biggest daily increase since March 2009! Stocks around the globe followed, with US equity futures wiping out much of yesterday's losses and up 1% at last check."

NYSE Unprepared For Glitches -Fox Business
Former NYC mayor Rudy Giuliani criticized the NYSE for poorly handling the 3 1/2-hour trading freeze on Wednesday. Host Neil Cavuto asks author and Swiss America Chairman Craig R. Smith his opinion. "I agree the NYSE was negligent and cryptic at best, and maybe even deceptive at worst. The NYSE knew early on that this problem was a configuration error." Smith points out that by not getting out in front of this issue, the NYSE allowed fears of cyber attacks to further exacerbate yesterday's steep stock sell-off. Smith applauded Fox Business Network for helping calm market investors, rather than hyping the unknown, which is so often done in mass media today.

United, NYSE Outages Stoke Fears About Vulnerability Of Computer Systems -CBSNews "It’s been a high-tech nightmare in the financial, and airline industries today because of separate glitches. Trading was halted at the New York Stock Exchange for 3 1/2 hours after what has been described as an 'internal problem.' Trading later resumed, with sizeable losses. This was followed by temporary trouble accessing the Wall Street Journal’s website, and a flood of conspiracy theories on social media about a coordinated hack attack. But before all this happened, United Airlines grounded flights across the country for nearly two hours, because of what they call a 'router issue.'" Craig Smith believes cyber attacks today present the #1 risk to U.S. citizens, which is explained in detail in his latest book, DON'T BANK ON IT! The Unsafe World of 21st Century Banking. Check out this Global Real-time Cyber Attack Map. Frightening to say the least.

Greece Shuts Markets Through July 13 -Bloomberg
"Greece extended the closure of its stock exchange and electronic bond market again as officials attempt to pull together a plan to unlock European bailout funds. Equity trading has been closed since June 29. The government extended capital controls through Monday, and Prime Minister Alexis Tsipras has until midnight Thursday to present the leaders of other euro-zone countries with a plan that includes spending cuts, in exchange for a bailout. More than six European leaders have made clear this is Greece’s last chance. A failure to find a compromise may force the continent’s most-indebted country to leave the euro." THE GREEK SHOWDOWN, a new Research Paper available FREE by calling 800-289-2646, explains how the Greeks fell for a leftist welfare state (Trojan Horse) and why America is on the same path!

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7.8.15 - STOCK TRADING HALTED, GOLD REBOUNDS

Gold last traded at $1,163 an ounce. Silver at $15.16 an ounce.

NEWS SUMMARY: U.S. stocks fell sharply Wednesday after China banned stock trading, followed by the NYSE exchange closure due to a "technical issue." Meanwhile, the Euro rebounded on Greek debt hopes, sending the U.S. dollar down and precious metal prices up on safe haven buying.

China Bans Stock Sales to Stop Sell-Off -Bloomberg
"China's securities regulator banned major shareholders, corporate executives and directors from selling stakes in listed companies for six months, its latest effort to stop the nation's $3.5 trillion stock-market rout. The Shanghai Composite Index slid 5.9 percent on Wednesday as official attempts to stop the selling, including measures to prop up small-cap stocks, were overshadowed by data showing an unprecedented liquidation of margin trades on Tuesday." Author and Swiss America Chairman Craig R. Smith commented, "Stocks are not as liquid as most investors believe. The same thing happened back in 2008, when they stopped short sellers on Wall Street. So much for free and open global stock markets."

NYSE Trading halted on NYSE floor -CNBC
"Trading in all symbols was temporarily halted on the New York Stock Exchange floor Wednesday due to an apparent technical issue. The NYSE said all open orders would be cancelled," according to Reuters. The NYSE was closed for over three hours, reopening at 3:10 pm ET.

China's really worrying financial crisis -Telegraph
"While all Western eyes remain firmly focused on Greece, a potentially much more significant financial crisis is developing on the other side of world. In some quarters, it's already being called China's 1929 - the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great Depression. Part of the problem with free markets is that by definition they cannot be controlled. Busts are as much part of their DNA as the wealth-enhancing properties of their booms. As China is about to discover, bad downturns come with the territory."

Greek debt showdown within 5 days -DailyMail
"Speaking at the European Parliament today Greek Prime Minister Alexis Tsipras said he was confident of meeting an end-of-the-week deadline set by eurozone leaders to reach a bailout deal or risk leaving the euro. 'Greece is on the edge of catastrophe. There will be riots and chaos', French central bank boss warns of dire consequences if the country does not make a deal this week." THE GREEK SHOWDOWN explains what to expect next.

Tech Guru George Gilder Makes Case for Gold Standard -Forbes
"A leading high-tech public intellectual attests to the ultra-modernity of the gold standard. George Gilder, also known as the living author most quoted by President Reagan, went on to high tech iconic thought leader status as the author of Microcosm, Telecosm, The Silicon Eye, and Knowledge and Power among other highly-regarded works." In The 21st Century Case for Gold: A New Information Theory of Money Gilder reveals anew the gold standard's deep scientific foundation, saying, " In economics money is part of the conduit or carrier. If money is to foster learning and knowledge. . . . money must be the measure, rather than what is measured." Bravo! We have been saying the same thing for three decades, read more in The Timeless Truth About Gold & Silver.

U.S. Mint sold out of silver coins on strong demand -Reuters
"The U.S. Mint said on Tuesday it temporarily sold out of its popular 2015 American Eagle silver bullion coins due to a 'significant' increase in demand, the latest sign plunging prices have spurred a resurgence of retail buying. In a statement sent to its biggest U.S. wholesalers, the Mint said its facility in West Point, New York, continues to produce coins and expects to resume sales in about two weeks." Now is the time to buy U.S. gold and silver coins - before prices resume climbing dramatically. Call your Swiss America representative to discuss The Wisdom of Buying Gold & Silver Right Now!.

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7.7.15 - What to do in today's shaky financial world

Gold last traded at $1,152 an ounce. Silver at $14.69 an ounce.

NEWS SUMMARY: U.S. stocks fell Tuesday as the ongoing uncertainty surrounding the Greek debt crisis weighed on global financial markets. Bloomberg reports, "The Shanghai Index sank for the fourth time in five days, erasing more than $3.2 trillion of value in less than a month." Meanwhile, a sharply lower Euro boosted the U.S. dollar, sending commodity and precious metal prices lower.

IMF warns Fed on risks of hiking too soon -Marketwatch
"Hiking interest rates too soon could stall the U.S. economy, the International Monetary Fund said Tuesday, embellishing a prior call for the Federal Reserve to hold steady until early next year. A rate hike could push up the dollar, which is already slightly overvalued. Further appreciation of the greenback is 'an important risk to growth,' the IMF said." As covered in The Biggest Bank Heist in History, authors Craig Smith and Lowell Ponte do not expect the Fed will be in a position to raise interest rates until 2016 or later. This Research Reports explains how and why the FED's free money to big banks has left our economy and wages stagnant - while creating the biggest stock market bubble in history!

banking States face shaky financial futures; pensions at risk -USAToday
"Alaska, the Dakotas, Nebraska and Florida are on the most solid financial footing, according to rankings of the 50 states released Tuesday by the Mercatus Center at George Mason University. New York, Connecticut, Massachusetts, New Jersey and Illinois are at the bottom. In Illinois, ranked No. 50, the government used funds set aside for future pensions to pay more urgent bills. When the pensions came due, Illinois tried to cut them. A judge ruled this past May that Illinois' pension cuts were unconstitutional. But that left the state with no plan to deal with a growing list of debts."

Greeks think 'manana' can be every day -Telegraph
"President Obama intervenes in Greek talks after Athens delegation turn up to summit without new reform proposals. Obama urges for successful conclusion to Greek talks as EU leaders openly discuss ways to manage a 'Grexit' 'If the Greek government is always for 'manana', for us it can be 'manana' every day' said Dalia Grybauskaite, the president of Lithuania. She adds the Greek delegation only presented 'pictures not paper' at the eurogroup."

THE GREEK SHOWDOWN explains what to expect next...

This Greek contagion might start an avalanche of falling dominoes as other countries renege on their debts, and threaten to leave the Euro and return to their old currencies such as the Greek Drachma. A “Grexit” (Greek Exit) could influence PIIGS nations to leave the Eurozone, Great Britain’s upcoming referendum to exit (“Brexit”) the European Union (EU), and France’s potential exit (“Frexit”) from both the Euro and EU if Marine LePen’s nationalists come to power.

This could shatter the unity Europe has been trying to build around the Euro as a rival to the U.S. Dollar.

The Euro was an effort doomed to fail, Nobel laureate economist Milton Friedman warned before the new currency was launched, because Second and Third World nations such as Greece cannot be equal allies with First World economic powers. The stronger powers that control the currency will economically colonize and dominate the weaker.

Good Luck Finding a Place to Hide as Global Markets Crumble -Bloomberg
"Investors tend to respond to impending doom by selling risky stuff and hiding out in safer assets - namely, bonds in places such as Germany and the U.S. There’s a problem with that formula this time around: Traders aren’t so sure they can find anything that’s truly safe right now. After all, where will investors run? The government debt that used to be their safety looks more and more treacherous." For over three decades Swiss America has maintained that the simplest form of wealth insurance is converting shaky, debt-based paper assets into the safest assets on earth - physical gold and silver - which are at the best prices we have seen in five years! Call 800-289-2646.

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7.6.15 - What Greek "No!" vote means

Gold last traded at $1,173 an ounce. Silver at $15.75 an ounce.

NEWS SUMMARY: Stock indexes in the U.S., Europe and Asia fell Monday on news of Greek voters' rejection of EU bailout terms. Meanwhile, commodities prices fell sharply amid uncertainty, a weaker Euro and flat U.S. dollar. Precious metals alone rose on fresh safe haven buying.

HAS GREECE VOTED “NO” ON ITS FUTURE? - PRBuzz
Craig Smith and Lowell Ponte have been warning Americans about the potential economic impact in their books, research reports and media interviews. "Soon we could see the same outcome in America. It is only a matter of time with all debt-ridden countries," explains Craig Smith in THE GREEK SHOWDOWN Research Report.

The ancient Greeks invented democracy. Have modern Greeks just manipulated democracy to commit suicide - or to kill the Euro currency, destroy a united Europe, and undermine America’s economy as well?

On Sunday, July 5, Greeks voted “No” by roughly 61 percent in a national referendum to, as the New York Times put it, “reject bailout terms in rebuff to European leaders.”

GreekFlag Greece’s 11 million people have run up debts of €320.4 Billion ($353 Billion) – more than a third of a trillion dollars – with a profligate, politicized welfare state that let workers in any of 1,200 “dangerous” occupations, including radio announcers and hairdressers, retire at age 50 with a pension equal to 80 percent of their peak lifetime annual pay.

Before capital controls on its banks limited account holder withdrawals to $67 per day, a national bank run was draining more than $2 Billion from its banks every three days. Even with such controls, without more bailout money from the European Central Bank (ECB), Greece’s banks will begin running out of money by Tuesday.

Without an ECB rescue, banks and the Syriza government might then begin “bail-ins,” seizing depositor accounts to cover bank shortfalls, as happened in March 2013 in the Greek-speaking Mediterranean island of Cyprus.

Greek banks prepare plan to raid deposits to avert collapse - FT.com
"Greek banks are preparing contingency plans for a possible 'bail-in' of depositors amid fears the country is heading for financial collapse, bankers and businesspeople with knowledge of the measures said on Friday. The plans, which call for a 'haircut' of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said. A Greek bail-in could resemble the rescue plan agreed by Cyprus in 2013, when customers’ funds were seized to shore up the banks, with a haircut imposed on uninsured deposits over €100,000."

Greece ‘48 Hours Away From Unrest’ - Bloomberg
"Greek Prime Minister Alexis Tsipras probably has 48 hours to resolve a standoff with creditors before civil unrest breaks out and ATMs run out of cash, hedge fund Balyasny Asset Management said. Fund managers are questioning how the International Monetary Fund and Europe’s leaders can seal a deal with Athens following the 'no' vote in a Greek referendum on Sunday."

Will the EU mess trigger a Gold & Silver Derivatives Default? - KingWorldNews
“The top 5 US banks have total a derivative exposure of $247 trillion. This is 3.5 times world GDP. Total derivatives for all banks in the world are just over $600 trillion. But these figures are less than half of the real exposure. A few years ago the BIS in Basel changed the basis of valuation of derivatives to 'Value to Maturity.' Within the derivative numbers of the top US banks we are now seeing some surprising changes in the precious metals. The notional amount of precious metals has gone from $22 billion in Q4 2014 to $75 billion in Q1 2015 and Citigroup accounts for most of that increase....the combination of the world economic problems and the massive derivative exposure makes the situation in the metals explosive.”

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7.2.15 - Financial Independence Day

Gold last traded at $1,163 an ounce. Silver at $15.56 an ounce.

NEWS SUMMARY: U.S. stocks fell Thursday on soft jobs data and uncertainty about the outcome of the Greek debt vote on Sunday. Meanwhile, the euro traded higher against the U.S. dollar and precious metal prices ended the week slightly lower. The U.S. financial markets, as well as Swiss America, will be closed on Friday in observance of Independence Day.

The real unemployment rate is 10.5% - CNBC
"The U.S. Labor Department said Thursday that the unemployment rate was 5.3% in June - but does that rate tell the real story? A number of economists look past the 'main' unemployment rate to a different figure the Bureau of Labor Statistics calls 'U-6,' (currently at 10.5%) which it defines as 'total unemployed, plus all marginally attached workers plus total employed part time for economic reasons, as a percent of all civilian labor force plus all marginally attached workers.' In other words, the unemployed, the underemployed and the discouraged - a rate that still remains high."

U.S. labor force devastation continues - ZeroHedge
"In what was an 'unambiguously' unpleasant June jobs payrolls report, with both April and May jobs revised lower, the fact that the number of Americans not in the labor force soared once again, this time by a whopping 640,000 or the most since April 2014 to a record 93.6 million, with the result being a participation rate of 62.6 or where it was in September 1977....Year-over-year, factory orders dropped 6.3% (adjusted) but 8% non-adjusted, the most since the financial crisis....Since 2007 the US has lost 1.4 million manufacturers and gained 1.4 million waiters and bartenders."

independence Financial Independence Day - Jack Nadel/HuffPost
"Once again, we will joyfully celebrate the birth of an independent nation. However, for millions of American families, financial independence is just a distant dream. I worry because so many are struggling for economic survival. Creating a personal 'Financial Independence Day' for all people is a very ambitious goal and will require much innovation and commitment, but it is entirely possible....I urge you to start with Step One of my method: Identify a Business Idea That You Love (and genuinely inspires you)." For nations, as well as individuals, the keys to financial independence are simply; 1. to earn all you can, 2. to save all you can, 3. to get out of debt as much as you can, and 4. to give all you can. Creating your own personal financial independence day also requires converting some of your assets that are 'dependent' upon government confidence and debt (i.e. U.S. dollars) into assets that are 'independent' of debt and actually create confidence - physical gold and silver! Discover the The Timeless Truth About Gold & Silver!

The American Dream is suffering - BMGlobalNews
"The Atlantic/Aspen Institute's 'The American Dream' June 2015 key takeaways; The American Dream is perceived to be suffering. While majorities within almost all key demographic groups believe the American Dream is suffering, white Americans are more pessimistic than other ethnic groups. Those over 65 years old are most likely to believe they are living the dream - 66% vs only 41% of Millennials (under 30 years old). While most age and ethnic groups are split as to whether the dream is attainable for most or only a few Americans, strong majorities (over 60%) believe it remains achievable if you work hard."

Will Greeks defy creditors’ ‘blackmail’? - FinancialTimes
"The ECB’s governing council on Wednesday evening decided not to increase the amount of collateral required for the emergency loans currently sustaining Greek banks. Tougher haircuts on bank collateral could push some lenders over the edge, some eurozone officials fear. 'I’m afraid that Greek banks might not reopen with the euro as the currency if the referendum on Sunday ends with a no,' Peter Kazimir, the Slovak finance minister, wrote on Twitter." Read THE GREEK SHOWDOWN, a new Research Paper available FREE to understand who will be the next Greece.

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7.1.15 - Gold: Safety From Uncertainty

Gold last traded at $1,169 an ounce. Silver at $15.57 an ounce.

NEWS SUMMARY: U.S. stocks rose Wednesday as investors digested mixed economic data amid renewed hopes of a Greece debt deal. Meanwhile, the U.S. dollar rose, pushing commodities and precious metal prices lower temporarily.

Greek crisis deepens - USA Today
"Greece's midnight deadline passed Tuesday for repaying $1.8 billion to the International Monetary Fund and other international creditors, deepening a financial crisis that threatens the Mediterranean nation's membership in the European Union. After the deadline passed (at 6 pm ET), Greece joined Zimbabwe, Sudan and Somalia in being in arrears to the IMF. Fitch Ratings has downgraded Greece's government debt further into junk territory. But should there be a so-called Grexit - or Greek exit from the European financial community - President Barack Obama said "it is important for us that we plan for any contingency, that we work with the ECB and other international institutions to ensure that some of the bumps that occur in the financial markets are smoothed out." Read THE GREEK SHOWDOWN, a new Research Paper available FREE by calling 800-289-2646.

Heartbreaking Scene Unfolds At Greek Banks - ZeroHedge
"1,000 Greek bank branches chanced a stampede in order to open their doors to the country's retirees on Wednesday. The scene was somewhat chaotic as pensioners formed long lines and the country’s elderly attempted to squeeze through the doors in order to access pension payments....A retired mariner who asked not to be named, told AFP he had no cash to buy crucial medicine for his sick wife. 'I worked for 50 years on the sea and now I am the beggar for 120 euros,' he said. 'I took out 120 euros - but I have no money for medication for my wife, who had an operation and is ill,' he added." Read THE SECRET WAR, a new Research Paper by Craig R. Smith & Lowell Ponte

coins With Greek Uncertainty, Investors Seek Safety in Gold - WSJ
"European demand for the age-old safe haven of gold coins has risen in recent weeks, as has the relatively new concept of investments in digital bitcoins, market participants say....Retail investors who buy coins and bullion have been influenced, Mr. Hanlon said, by the images of bank lines in Athens far more than by concerns about monetary policy in the U.S. over the past few years."

Many ask why the dollar price of gold has not risen more this year, given all the economic uncertainty? Truth is, gold prices started the year at about $1,200 an ounce and have clung near that level all year long - demonstrating the stability of gold in the face of an artificially stronger U.S. dollar and stock market. It is never too late to get started converting some cash into hard money for liquidity, safety and wealth preservation. In fact, a top performing asset over the past 15 years is now presenting gold buyers with an opportunity not seen since 2007. We are now buying them aggressively. We firmly suggest you at least grab a few of these, at minimum, while they are available. SEE details and performance chart

Greece Can Teach The World A Needed Lesson - Steve Forbes
"Former US Presidential candidate and publisher of Forbes Magazine, Steve Forbes, used the platform of his magazine to pen an open letter to the prime minister and finance minister of Greece, Alexis Tsipras and Yanis Varoufakis. Here’s how you can put away your beggar’s cup for good.... Adopt your own 10% flat tax....Privatization....Stop trashing former Greek residents or those of Greek descent who want to help out by investing in Greece....Change labor laws that kill job creation....Don’t even think of abandoning the euro....And, for goodness’ sake, don’t pull a Cyprus and confiscate bank deposits."

The Surprising Power of Cash - Wired
"There’s a scene in It’s a Wonderful Life you might remember. The citizens of Bedford Falls descend on the Savings and Loan, demanding cash in hand. A beleaguered George Bailey explains that the money’s not actually in the bank; it’s tied up in various investments. Eventually, he talks most of them down. In the 21st century, though, and in Greece this week in particular, there is no George Bailey. In fact, in Greece this week there are no open banks. There are just ATMs. As economies crumble, so does the viability of the digital infrastructure that so much of the world has come to take for granted as the way money moves. The harder an economy is hit, the more valuable cash becomes. But as Greek citizens coming away from ATMs empty-handed can attest, it turns out that money and currency aren’t the same thing."

Excerpt from DON'T BANK ON IT!, “It’s a Wonderful Life”, page 195-196 ...

One theme of the 1946 Frank Capra movie “It’s a Wonderful Life” was Bailey being shown what his community would have been like if he and his little bank had never existed.

We are now beginning to see that alternative future in our own world, and what it portends is not pretty.

As our banks become mere middlemen for government money, how long will it be until government simply eliminates these middlemen and itself becomes America’s bank?

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